Orbit International Corp's gross profit for the three months ended in Jun. 2014 was $2.24 Mil. Orbit International Corp's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $8.09 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Orbit International Corp's gross profit for the three months ended in Jun. 2014 was $2.24 Mil. Orbit International Corp's revenue for the three months ended in Jun. 2014 was $5.40 Mil. Therefore, Orbit International Corp's Gross Margin for the quarter that ended in Jun. 2014 was 41.46%.

Orbit International Corp had a gross margin of 41.46% for the quarter that ended in Jun. 2014 => Durable competitive advantage

During the past 13 years, the highestGross Margin of Orbit International Corp was 50.59%. The lowest was 35.43%. And the median was 42.62%.

Warning Sign:

Orbit International Corp gross margin has been in long term decline. The average rate of decline per year is -1.3%.

Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Orbit International Corp's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin

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